March 2011, the food ingredients group contributed the most to the formation of deflation in Bandar Lampung City. Meanwhile, in February 2011, the processed food, beverages, cigarettes & tobacco group was the largest contributing group, but in March 2011 it became the group that was holding back the rate of deflation. The decline in prices of various commodities in the foodstuffs group resulted in deflation in Bandar Lampung City of 0.41 percent.
Only one group in March 2011 experienced a decline in the index which caused deflation, namely the foodstuffs group which was mainly due to the decline in prices of red chilies, rice, cayenne peppers, squid, green mustard greens and green chilies. Five other groups experienced an increase in the index which held back the rate of deflation, namely the processed food, beverages, cigarettes & tobacco group, the health group, the housing, water, electricity, gas & fuel group, the clothing group, and the transport, communication & financial services group. Deflation in Bandar Lampung City was ranked 39th out of 66 cities where price developments were observed. A total of 14 cities experienced inflation and 52 cities experienced deflation. The highest inflation occurred in Palu at 0.67 percent, while the largest deflation occurred in Padang at 2.59 percent.
Based on the calculation of the consumer price index (CPI), deflation occurred due to a decline in the index in the food expenditure group of 3.39 percent. The education, recreation and sports group did not experience a change in the index, while the processed food, beverages, cigarettes & tobacco group experienced an index increase of 2.39 percent, health 0.41 percent, housing 0.18 percent, clothing 0.11 percent. and transport 0.01 percent.
Several commodities that dominantly contributed to deflation include red chilies, rice, cayenne peppers, squid, green mustard greens, bricks, green chilies, tomatoes, anchovies and kale. Calendar year (point to point) inflation in March 2011 was 1.11 percent, while year on year (yoy) inflation in Bandar Lampung City was 10.99 percent.
